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How Does Honeywell Make its Money?
Honeywell is a diversified industrial technology company that operates across four business segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions. The company’s products and technologies are used in everything from aircraft engines and avionics to warehouse automation and building management systems. Honeywell has been actively reshaping its portfolio through acquisitions and divestitures, including the planned spin-off of its Advanced Materials business.
Honeywell (HON) Business Model
Honeywell operates in the industrial sector. Below is a summary of Honeywell’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Honeywell’s 2024 fiscal year filings with the SEC.
Honeywell Competitors
Honeywell’s key competitors and comparable public companies in the industrials sector include GE Aerospace and Lockheed Martin. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Honeywell stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
Honeywell’s total revenue in 2024 grew 3.0% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Aerospace Technologies | $15,500 | $13,700 |
| Industrial Automation | $7,400 | $7,600 |
| Building Automation | $6,600 | $6,100 |
| Energy and Sustainability Solutions | $7,200 | $6,000 |
| Total | $37,800 | $36,700 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of Honeywell’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $37,800 | $36,700 |
| Cost of Revenue | $24,500 | $24,200 |
| Gross Profit | $13,300 | $12,500 |
| Operating Expenses | $5,000 | $5,200 |
| Operating Income | $8,300 | $7,300 |
| Net Income | $5,700 | $5,400 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 35.2% — This tells us how much profit Honeywell keeps after direct costs of delivering their product or service.
Operating Margin: 22.0% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 3.0% — Year-over-year revenue growth from 2023 to 2024.
Is Honeywell Profitable?
Yes, Honeywell is profitable. The company reported net income of $5,700 on total revenue of $37,800.
Honeywell (HON) Financial Summary
Honeywell (HON) is an industrial company that generated $37,800 in total revenue in fiscal year 2024. The company earned $5,700 in net income, making it profitable. For a deeper look at Honeywell’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.